3. A toy manufacturer makes stuffed kittens and puppies which have relatively lifelike motions. There are threedifferent mechanisms that can be installed in these "pets." These toys will sell for the same price regardless ofthe mechanism installed, but each mechanism has its own variable cost and setup cost. Profit, therefore, isdependent upon the choice of mechanism and upon the level of demand. The manufacturer has in hand aforecast of demand that suggests a 0.2 probability of light demand, a 0.45 probability of moderate demand,and a probability of 0.35 of heavy demand. Payoffs for each mechanism-demand combination appear in thetable below.Wind-up actionPneumatic actionElectronic actionDemandLightModerate$250,000$90,000-$100,000400,000440,000400,000Heavy650,000740,000780,000Construct the appropriate decision tree to analyze this problem. Use standard symbols for the tree.Analyze the tree to select the optimal decision for the manufacturer.

In the question, we could see that there are three alternatives, these are wind-up action, Pneumatic…

Answered: 3. A toy manufacturer makes stuffed…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

See similar textbooks

Similar questions

For a given perishable product, a retailer pays $5 for each unit, then sells them for $10 each. At the end of the day, units not sold at the store are disposed of, and the retailer receives just $1 for each. Given the following probability distribution describing daily demand, how many units should be stocked? x Prob. (Demand = x) x Prob. (Demand = x) 0 0.01 7 0.18 1 0.02 8 0.14 2 0.04 9 0.09 3 0.07 10 0.05 4 0.09 11 0.02 5 0.12 12 0.01 6 0.15 13 0.01
The table above provides the aggregate plan of production by a firm. It is known that the firm uses a level plan with lost sales, i.e., without backorders. Given this information, what is the number in the cell that says xx?
The entry to record cost of goods sold at the end of the month is a: Debit to Work in Process Inventory and a credit to Finished Goods Inventory. Debit to Cost of Goods Sold and a credit to Finished Goods Inventory. Debit to Finished Goods Inventory and a credit to Cost of Goods Sold. Debit to Finished Goods Inventory and a credit to Work in Process Inventory.
In preparing for the upcoming holiday season, Fresh Toy Company (FTC) designed a new doll called The Dougle that teaches children how to dance. The fixed cost to produce the doll is $100,000. The variable cost, which includes material, labor, and shipping costs, is $29 per doll. During the holiday selling season, FTC will sell the dolls for $37 each. If FTC overproduces the dolls, the excess dolls will be sold in January through a distributor who has agreed to pay FTC $10 per doll. Demand for new toys during the holiday selling season is extremely uncertain. Forecasts are for expected sales of 60,000 dolls with a standar deviation of 15,000. The normal probability distribution is assumed to be a good description of the demand. FTC has tentatively decided to produce 60,000 units (the same as average demand), but it wants to conduct an analysis regarding this production quantity before finalizing the decision. unit production quantity and a more conservative 50,000-unit production…
Please help to solve step by step.
Elsa Corporation, a company that manufactures and markets low-end table computers, asked ourfriend Ms. Market Researcher to create the demand curve for its SD 721 model. She conductedsome market research and gave Elsa the demand curve as well as some additional information:350,000 units of SD 721 will sell at a price of $250.(1) What is the point price elasticity if 500,000 units will sell at a price of $200? (2) What is the point price elasticity if 125,000 units will sell at a price of $305?
PHARMACEUTICAL CALCULATIONS 5. A physician offers a patient the option of prescribing 30 scored ZOLOFT 100-mg tablets (for the patient to break in half with a dose of one-half tablet) or 60 tab- lets containing 50 mg of the drug. Calcu- late the cost differential and indicate the most economical option for the patient if the 100-mg tablets cost $192.76 per 100 tablets and the 50-mg tablets cost $187.34 per 100 tablets. 6 Calculate the daily drug cost differential
6. Laura is trying to decide whether to sell her knitted hats on Etsy, at a holiday bazaar, or in a local boutique. Demand could be 0 hats/month, 10 hats/month, or 20 hats/month. Given the payoff matrix below, what is her decision under equally likely? Demand = 0 Demand = 10 Demand = 20 Etsy -$70 $80 $230 Bazaar -$60 $90 $240 Boutique -$80 $70 $220 Select one: a. Etsy and boutique. b. Etsy only. c. Etsy and bazaar. d. Bazaar and boutique. e. All 3 are equally good. f. Bazaar only. g. None of them are good options. h. Boutique only.
kindly do solve accurately and exact with correct formuas thanks..with complete steps
Ray Holt seeks an investment for his new business. The investor will bear all the costs(fixed + variable) and wants a rate of return of at least Y%. For the business fixed cost is Fc, selling price of a unit is Sp, and Cost of production of a unit is Cp. How many units, x, should Ray Holt maketo meet the investor’s rate of return requirement? If the requested rate of return is 10%, fixed cost is $10,000, selling price is $5, and cost of production is $3, how many units should be made?
Exercise 1: You are the operations manager at the company Servicios de Salud, Inc., which provides care services to the elderly. An important aspect of your job is ensuring that nursing homes have a healthy inventory of nutritional drinks for residents. Below is the historical demand for the product for one year: Month Historical demand (boxes) Forecasted demand (boxes) January 300 February 340 March 370 April 410 ¿? May 470 ¿? June 570 ¿? July 630 ¿? August 720 ¿? September 640 ¿? October 460 ¿? November 420 ¿? December 390 ¿? a. Calculate the average demand for each period from April to December using the 3-month simple moving average. Presents calculations and findings in a clear and organized manner. b. Discuss any trends or patterns observed in the calculated moving average demand values. c. Make an interpretation of the results and their implications for forecasting…
Standard Costing; Variance Analysis; Strategic Considerations In a Wall Street Journalarticle, the author notes that various retailers in the United States (e.g., Meijer, Gap, and OfficeDepot) are turning to consulting firms, such as Accenture, to develop engineered labor standards forcashiers and other retail workers. Monitoring labor-hour consumption (i.e., labor efficiency) undersuch standards involves timing from the first scan of an item in a customer’s purchase to the production of a sales receipt for the customer. A commentator for Meijer states that the system now in usehas enabled the company to more efficiently staff stores while concomitantly increasing customerservice ratings. A representative from another client of Accenture states that the new system allowsthe retailer to determine how many workers to schedule at a given time, resulting in a labor-costreduction of approximately 8%. Engineered standards were developed many years ago in a manufacturing environment, at…

SEE MORE QUESTIONS

Recommended textbooks for you

Practical Management Science

Operations Management

ISBN:

9781337406659

Author:

WINSTON, Wayne L.

Publisher:

Cengage,

Operations Management

ISBN:

9781259667473

Author:

William J Stevenson

Publisher:

McGraw-Hill Education

Operations and Supply Chain Management (Mcgraw-hi…

Operations Management

ISBN:

9781259666100

Author:

F. Robert Jacobs, Richard B Chase

Publisher:

McGraw-Hill Education

Practical Management Science

Operations Management

ISBN:

9781337406659

Author:

WINSTON, Wayne L.

Publisher:

Cengage,

Operations Management

ISBN:

9781259667473

Author:

William J Stevenson

Publisher:

McGraw-Hill Education

Operations and Supply Chain Management (Mcgraw-hi…

Operations Management

ISBN:

9781259666100

Author:

F. Robert Jacobs, Richard B Chase

Publisher:

McGraw-Hill Education

Business in Action

Operations Management

ISBN:

9780135198100

Author:

BOVEE

Publisher:

PEARSON CO

Purchasing and Supply Chain Management

Operations Management

ISBN:

9781285869681

Author:

Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson

Publisher:

Cengage Learning

Production and Operations Analysis, Seventh Editi…

Operations Management

ISBN:

9781478623069

Author:

Steven Nahmias, Tava Lennon Olsen

Publisher:

Waveland Press, Inc.

SEE MORE TEXTBOOKS